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Trade and agricultural employment linkages in general equilibrium modelling

  • Vanzetti, David
  • Peters, Ralf

Trade negotiators are frequently concerned about the possible negative effects of trade liberalisation on employment in specific sectors. The agricultural sector in developing countries has characteristics that make it different from industrial or service sectors. These characteristics are an informal labour force, low productivity, absence of regulations and a tie to land. These features affect adjustment costs. A global computable general equilibrium model, GTAP, is used to analyse employment and wage effects of trade liberalization in three developing countries — Indonesia, Bangladesh and Guatemala. The ability to fully utilize all resources, including labour, is important. The results highlight the advantage of a functioning and flexible labour market that can readily adjust to trade shocks.

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File URL: http://purl.umn.edu/152182
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Paper provided by Australian Agricultural and Resource Economics Society in its series 2013 Conference (57th), February 5-8, 2013, Sydney, Australia with number 152182.

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Date of creation: Feb 2013
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Handle: RePEc:ags:aare13:152182
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  1. Anderson, Kym & Martin, William J. & Valenzuela, Ernesto, 2006. "The Relative Importance of Global Agricultural Subsidies and Market Access," 2006 Annual meeting, July 23-26, Long Beach, CA 21180, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. E. Paul Durrenberger, 2012. "Labour," Chapters, in: A Handbook of Economic Anthropology, Second Edition, chapter 8 Edward Elgar.
  3. Peters, Ralf & Vanzetti, David, 2005. "Shifting Sands: Searching For A Compromise In The Wto Negotiations On Agriculture," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137943, Australian Agricultural and Resource Economics Society.
  4. Vanzetti, David & Peters, Ralf, 2008. "Do Sensitive Products Undermine Ambition?," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6044, Australian Agricultural and Resource Economics Society.
  5. Stefan Boeters & Luc Savard, 2011. "The Labour Market in CGE Models," Cahiers de recherche 11-20, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
  6. Frank Ackerman & Kevin P. Gallagher, 2008. "The Shrinking Gains from Global Trade Liberalization in Computable General Equilibrium Models: A Critical Assessment," International Journal of Political Economy, M.E. Sharpe, Inc., vol. 37(1), pages 50-77, April.
  7. Ernst, Christoph & Peters, Ralf, 2012. "Employment dimension of trade liberalization with China [ electronic resource ]: analysis of the case of Indonesia with dynamic social accounting matrix," ILO Working Papers 468155, International Labour Organization.
  8. Laborde Debucquet, David & Martin, Will & van der Mensbrugghe, Dominique, 2011. "Measuring the impacts of global trade reform with optimal aggregators of distortions:," IFPRI discussion papers 1123, International Food Policy Research Institute (IFPRI).
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